The first tentative plan for comprehensive peace between the New Republic and Imperial Remnant was proposed by Imperial Admiral Betl Oxtroe to the New Republic Provisional Council in 7 ABY. Oxtroe's proposal would appoint EmperorPalpatine's 11-year old grand-niece Ederlathh Pallopides as the titular Empress, with the former New Republic Councilors holding effective power. Although the New Republic was eager to negotiate, the secret talks soon ended when Oxtroe was assassinated, apparently by Noghri under the direction of Grand AdmiralThrawn.[4]

The final treaty was the brainchild of Pellaeon who, after acknowledging the impossibility of an honorable victory over the New Republic, proposed it to the Imperial Council of Moffs, select officers of the Imperial Starfleet, and other officials who, for the most part, grudgingly agreed.[8] The Braxant sector's Moff, Vilim Disra, though openly siding with Pellaeon, chose to side with Imperial GuardsmanGrodin Tierce and a con-artist named Flim to take advantage of the Caamas Document Crisis in order to nearly bring both the New Republic and the Imperial Remnant into separate internal civil wars.[9]

The treaty did not outline a surrender of any sort on the side of either the Imperial Remnant or the New Republic; it instead put forth terms that would leave what remained of the Galactic Empire intact but with an end of hostilities between the two rival parties. It additionally opened the Imperial Remnant to trade and commerce with the New Republic, and put forth limitations on smuggling for both governments to enforce. In addition, systems in either government group would be allowed to choose their alignment, satisfying Imperial-loyal systems in New Republic space.[10] The treaty also banned the use of cloaking devices.[8]